rmd-rbd
I get a little mixed up on this rmd and required birth date rule.
client’s birthdate is 12-30-1937.
does he have to take his rmd by the end of 2008 or can he take his 2008 rmd by 4-1-09 and then take his 2009 rmd by the end of 2009?
Thanks,
doug
Permalink Submitted by Jose Morales on Tue, 2008-12-02 16:40
RBD actually refers to Required Beginning Date. This is the date by which an individual must take their first mandatory IRA distribution. If you client turned 70 1/2 in 2008 their RBD would be 4/1/2009. If they elect to delay their 2008 distribution until any time between January 1st of 2009 and April 1st of 2009 they will be required to take a second distribution by December 31st of 2009.
Permalink Submitted by Al Fry on Tue, 2008-12-02 18:42
Plus, the RMD for 2009 will be based on the 12-31-08 balance, unreduced by the 2008 RMD, if one waits until 2009 for the 2008 RMD. That may be more meaningful this year that account balances are down, as compared to the 12-31-07 balance (I think). This speculation stuff drives me crazy.
Permalink Submitted by Clyde Wolf on Tue, 2008-12-02 21:21
And you may want to look at the link in this thread:http://www.irahelp.com/phpBB/viewtopic.php?area=&t=2459
Permalink Submitted by charles lore on Wed, 2008-12-03 01:35
note that since the age on his birthday in the First distribution year ( 2008) is 71 .. he goes to the uniform table and using factor based on 71. NOT 70